Technical Analysis of Indian Equities by Nooresh

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Nifty – Corrections will come and go.

Nifty support

 

Nifty Technical View

 

-> Ever since elections the market has seen support around the 50 dema or at the channel support.

-> 50 dema is placed around 8260.

-> Channel support closer to 8150-8180.

-> The trend remains up till we continue to hold the channel supports or above 8000-8050.

-> A lot of stocks have corrected a good 15-30% from recent peaks giving enough opportunities to chip in.

-> Expect a time-wise correction where we can get range bound for some time. A move beyond 8450 will signal a bottom in place.

 

Till the trend is strong one is better of buying dips and holding on.

 

Some Thoughts

 

As a #trader you have to always remember you will have 20-50% of your trades to be losing ones. If it hurts you change yourself not the system.

 

As an #investor need to remember not every quarter or every month will be positive on price moves πŸ™‚ it can also be negative be ready for it

 

So after a superb 6 months move on markets where there were huge jumps in stocks ,  one should be ready for a quarter or more of mild negative to mild positive returns.

 

So tone down your expectations , follow your strategy and going ahead you may again get a similar solid run up in your portfolio if you remain focused and patient.

 

As the markets go up our expectations increase instead of reducing. This is the time when investors/traders start making mistakes by taking leveraged bets or trying to do more things to get a better return in boring markets and end up messing up the strategy.

 

Its tough to call a time-wise correction but its better to be ready for it.

 

PLANNING A TECHNICAL ANALYSIS TRAINING – Pay as you Want  IN HYDERABAD on January 18-19.

If we get a good no of interested participants we can go ahead with the logistics.

If interested people can please mail to nooreshtech@analyseindia.com

Article by Nooresh Merani

Nooresh has written 2755 articles.

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